The Law of Corporate Finance: General Principles and EU Law

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The first volume addressed the management of cash flow, risk, agency relationships, and information within commercial transactions, utilizing legal tools and practices. The second volume focused on investments, emphasizing the significance of voluntary contracts as essential legal instruments for firms. It introduced the general legal aspects of investment contracts and payment obligations. This volume expands on funding transactions, exit strategies, and critical decisions related to business acquisitions. From the perspective of a firm seeking funding, these transactions are viewed as funding activities, while for investors providing the funding, they are seen as investment transactions. Although the primary focus is on the firm's perspective in raising funds, it also covers the legal aspects of various investment transactions. Funding transactions are crucial for managing cash flow, as all investments require some form of funding. The firm's funding mix significantly impacts risk. The primary methods for raising funds include utilizing retained profits and optimizing existing assets. Additionally, firms can secure funding through bank loans or by issuing debt, equity, or mezzanine securities to a select group of investors.